Kakao Corp. picked Shina Chung as its next chief, designating the head of its corporate venture-capital arm to lead the South Korean internet company out of a crisis.
The company plans to formally announce the appointment of Chung, 48, as its new chief executive officer following a board meeting and a general shareholders’ meeting in March, it said in a statement on Wednesday.
Kakao is mired in a deepening crisis following the arrest of its chief investment officer in October for alleged stock price manipulation connected to a high-profile bidding war over K-pop agency SM Entertainment. Authorities are also probing other potential violations including excessive listing of affiliates, breach of fair trade rules and monopolistic practices by Kakao, which has grown from a mobile messenger to Korea’s 15th-largest business group by assets.
Chung vowed to demonstrate “proactive and responsible” leadership, addressing public criticism that Kakao has grown directionless during the tumult. “I will not miss” this opportunity for change at the company, she said in the statement.
Chung is a rare female leader in South Korea’s male-dominated business sphere. She joined Kakao Ventures in 2014 and was promoted to head of the business four years later. Under her leadership, Kakao has invested in a large number of startups in the fields of artificial intelligence, robotics, mobile platform businesses, gaming and digital health care, according to the statement. Chung previously worked at Boston Consulting Group, EBay Inc. and Naver Corp.
Kakao has also established a compliance committee headed by Kim So-young, a former justice of South Korea’s Supreme Court.
(Source: Bloomberg)
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